The credit rating revolution is coming to Israel in the coming months. are you ready?
In the end it will affect all of us at the level of
Accepting loans on the right terms, according to our rating.
Personal credit rating is a score given to individuals,
Expressing their repayment ability. This grade actually
Provides banks and credit entities with insights into the relationship
To you - should I give you credit? are you
Returning your debts? All the information about you
In fact, the credit score is weighted accordingly
They give you credit and set the interest rate.
The more confident you are in the eyes of the bank so the interest rate
You pay will be lower. ??
This ranking relies primarily on history
Your finances, your equity
(Assets and liabilities), and financial conduct
You have different authorities (do you pay?
At the time of accounts, whether you have unpaid debts and more).
But like any rating - even this ranking has weaknesses -
Not all information is available, not all information is up-to-date, people
Can evade "obligations" and even hide distress
Financial - Fishman has done it for many years - you
Do you think someone would give him a low credit rating?
Definately not. In practice no one really knew what his condition was -
Simply, did not know how to appreciate his assets (and his debts);
And beyond that - it is not always possible to connect a private person to
Society, but if society is in bad shape and private person
There's actually a fortune - how will its rating look?
In separate entities. But the court has already shown us
He knows how to lift a screen and connect the company with
The private person, and obligate him to inject money into society,
Especially if it turned out there were smuggling of assets.
There are three agencies in the US market
Rating (government controlled) updating data
And information and matching personal ratings. The information they are
Receiving comes from all credit card companies, banks
And financial institutions. This is ongoing information
By means of which a customer portfolio is produced in the rating companies
Which is continuously updated.
And this information is translated into Zion and actually returns to them
Credit institutions that examine customers' repayment ability.
Customers, more accurate borrowers, are tested at each point
The time when they seek increasing credit, loan,
Credit card, designated car loan, renovation,
Mortgage course and more. Your score also allows for marketing
Dedicated credit card companies - say for example a company
The credit is interested in approaching all the safe borrowers
In a proposal to increase the framework at a very low interest rate,
She can get the people out of the pool and contact them.
The credit rating is determined by the rating companies
According to payment history; Accounts
Credit open; Use of credit is utilized
And available credit; The seniority of your credit portfolio;
The requests for credit mainly in the past year;
Problems - bankruptcies, unpaid debts, etc.
Credit to: Avishay Ovadia.
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